LINAMAR CORP (LNR.CA) Stock Fundamental Analysis
TSX:LNR - CA53278L1076 - Common Stock
74.54 CAD
-0.44 (-0.59%)
Taking everything into account, LNR scores 5 out of 10 in our fundamental rating. LNR was compared to 5 industry peers in the Automobile Components industry. LNR has an average financial health and profitability rating. LNR has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
LNR had positive earnings in the past year.
In the past year LNR had a positive cash flow from operations.
LNR had positive earnings in each of the past 5 years.
In the past 5 years LNR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of LNR (1.95%) is worse than 60.00% of its industry peers.
The Return On Equity of LNR (3.62%) is worse than 60.00% of its industry peers.
With an excellent Return On Invested Capital value of 7.15%, LNR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LNR is in line with the industry average of 6.72%.
The last Return On Invested Capital (7.15%) for LNR is above the 3 year average (6.55%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.95% | ||
| ROE | 3.62% | ||
| ROIC | 7.15% |
ROA(3y)4.18%
ROA(5y)4.38%
ROE(3y)7.69%
ROE(5y)7.72%
ROIC(3y)6.55%
ROIC(5y)6.26%
1.3 Margins
Looking at the Profit Margin, with a value of 2.06%, LNR is doing worse than 60.00% of the companies in the same industry.
In the last couple of years the Profit Margin of LNR has declined.
Looking at the Operating Margin, with a value of 9.01%, LNR is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Operating Margin of LNR has remained more or less at the same level.
LNR has a Gross Margin (14.59%) which is in line with its industry peers.
LNR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.01% | ||
| PM (TTM) | 2.06% | ||
| GM | 14.59% |
OM growth 3Y-0.8%
OM growth 5Y0%
PM growth 3Y-27.61%
PM growth 5Y-15.91%
GM growth 3Y-0.31%
GM growth 5Y-0.22%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LNR is destroying value.
The number of shares outstanding for LNR has been reduced compared to 1 year ago.
The number of shares outstanding for LNR has been reduced compared to 5 years ago.
The debt/assets ratio for LNR is higher compared to a year ago.
2.2 Solvency
LNR has an Altman-Z score of 2.71. This is not the best score and indicates that LNR is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.71, LNR perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
LNR has a debt to FCF ratio of 2.41. This is a good value and a sign of high solvency as LNR would need 2.41 years to pay back of all of its debts.
LNR has a Debt to FCF ratio of 2.41. This is in the better half of the industry: LNR outperforms 80.00% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that LNR is not too dependend on debt financing.
LNR has a Debt to Equity ratio (0.33) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.41 | ||
| Altman-Z | 2.71 |
ROIC/WACC0.87
WACC8.18%
2.3 Liquidity
A Current Ratio of 1.80 indicates that LNR should not have too much problems paying its short term obligations.
LNR has a Current ratio of 1.80. This is comparable to the rest of the industry: LNR outperforms 60.00% of its industry peers.
LNR has a Quick Ratio of 1.04. This is a normal value and indicates that LNR is financially healthy and should not expect problems in meeting its short term obligations.
LNR has a Quick ratio of 1.04. This is comparable to the rest of the industry: LNR outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The earnings per share for LNR have decreased by -1.02% in the last year.
LNR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.61% yearly.
Looking at the last year, LNR shows a decrease in Revenue. The Revenue has decreased by -2.60% in the last year.
Measured over the past years, LNR shows a small growth in Revenue. The Revenue has been growing by 7.37% on average per year.
EPS 1Y (TTM)-1.02%
EPS 3Y14.51%
EPS 5Y6.61%
EPS Q2Q%-8.17%
Revenue 1Y (TTM)-2.6%
Revenue growth 3Y17.42%
Revenue growth 5Y7.37%
Sales Q2Q%-7.23%
3.2 Future
Based on estimates for the next years, LNR will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.73% on average per year.
The Revenue is expected to grow by 0.01% on average over the next years.
EPS Next Y3.39%
EPS Next 2Y5.58%
EPS Next 3Y10.73%
EPS Next 5YN/A
Revenue Next Year-4.41%
Revenue Next 2Y-0.7%
Revenue Next 3Y0.01%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.65, which indicates a rather cheap valuation of LNR.
Based on the Price/Earnings ratio, LNR is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
LNR is valuated cheaply when we compare the Price/Earnings ratio to 26.90, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 6.81 indicates a rather cheap valuation of LNR.
LNR's Price/Forward Earnings is on the same level as the industry average.
LNR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.65 | ||
| Fwd PE | 6.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LNR is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
LNR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LNR is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.87 | ||
| EV/EBITDA | 3.68 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.26
PEG (5Y)1.16
EPS Next 2Y5.58%
EPS Next 3Y10.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.55%, LNR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.48, LNR is paying slightly less dividend.
Compared to the average S&P500 Dividend Yield of 2.32, LNR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
5.2 History
On average, the dividend of LNR grows each year by 15.99%, which is quite nice.
LNR has paid a dividend for at least 10 years, which is a reliable track record.
LNR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)15.99%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
LNR pays out 30.00% of its income as dividend. This is a sustainable payout ratio.
LNR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP30%
EPS Next 2Y5.58%
EPS Next 3Y10.73%
TSX:LNR (9/2/2025, 7:00:00 PM)
74.54
-0.44 (-0.59%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners19.03%
Inst Owner ChangeN/A
Ins Owners35.49%
Ins Owner ChangeN/A
Market Cap4.46B
Analysts76
Price Target79.73 (6.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
Yearly Dividend1
Dividend Growth(5Y)15.99%
DP30%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.6%
Min EPS beat(2)1.02%
Max EPS beat(2)12.18%
EPS beat(4)3
Avg EPS beat(4)6.78%
Min EPS beat(4)-0.57%
Max EPS beat(4)14.48%
EPS beat(8)7
Avg EPS beat(8)8.99%
EPS beat(12)10
Avg EPS beat(12)8.3%
EPS beat(16)13
Avg EPS beat(16)10.24%
Revenue beat(2)0
Avg Revenue beat(2)-2.85%
Min Revenue beat(2)-3.06%
Max Revenue beat(2)-2.65%
Revenue beat(4)0
Avg Revenue beat(4)-2.15%
Min Revenue beat(4)-3.06%
Max Revenue beat(4)-1.42%
Revenue beat(8)3
Avg Revenue beat(8)-0.88%
Revenue beat(12)7
Avg Revenue beat(12)1.13%
Revenue beat(16)10
Avg Revenue beat(16)1.73%
PT rev (1m)18.43%
PT rev (3m)22.77%
EPS NQ rev (1m)-5.84%
EPS NQ rev (3m)-6.67%
EPS NY rev (1m)5.56%
EPS NY rev (3m)5.56%
Revenue NQ rev (1m)-2.19%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.59%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.65 | ||
| Fwd PE | 6.81 | ||
| P/S | 0.44 | ||
| P/FCF | 4.87 | ||
| P/OCF | 3.33 | ||
| P/B | 0.77 | ||
| P/tB | 1.16 | ||
| EV/EBITDA | 3.68 |
EPS(TTM)9.74
EY13.07%
EPS(NY)10.95
Fwd EY14.69%
FCF(TTM)15.32
FCFY20.55%
OCF(TTM)22.36
OCFY30%
SpS170.31
BVpS97.05
TBVpS64.37
PEG (NY)2.26
PEG (5Y)1.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.95% | ||
| ROE | 3.62% | ||
| ROCE | 11.38% | ||
| ROIC | 7.15% | ||
| ROICexc | 8.17% | ||
| ROICexgc | 11.29% | ||
| OM | 9.01% | ||
| PM (TTM) | 2.06% | ||
| GM | 14.59% | ||
| FCFM | 9% |
ROA(3y)4.18%
ROA(5y)4.38%
ROE(3y)7.69%
ROE(5y)7.72%
ROIC(3y)6.55%
ROIC(5y)6.26%
ROICexc(3y)7.42%
ROICexc(5y)7.24%
ROICexgc(3y)10.64%
ROICexgc(5y)10.8%
ROCE(3y)10.42%
ROCE(5y)9.96%
ROICexcg growth 3Y-1.07%
ROICexcg growth 5Y3.47%
ROICexc growth 3Y2.32%
ROICexc growth 5Y3.81%
OM growth 3Y-0.8%
OM growth 5Y0%
PM growth 3Y-27.61%
PM growth 5Y-15.91%
GM growth 3Y-0.31%
GM growth 5Y-0.22%
F-Score7
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.41 | ||
| Debt/EBITDA | 1.26 | ||
| Cap/Depr | 67.65% | ||
| Cap/Sales | 4.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.8% | ||
| Profit Quality | 435.81% | ||
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 2.71 |
F-Score7
WACC8.18%
ROIC/WACC0.87
Cap/Depr(3y)116.63%
Cap/Depr(5y)94.15%
Cap/Sales(3y)6.26%
Cap/Sales(5y)5.54%
Profit Quality(3y)92.83%
Profit Quality(5y)168.68%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.02%
EPS 3Y14.51%
EPS 5Y6.61%
EPS Q2Q%-8.17%
EPS Next Y3.39%
EPS Next 2Y5.58%
EPS Next 3Y10.73%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.6%
Revenue growth 3Y17.42%
Revenue growth 5Y7.37%
Sales Q2Q%-7.23%
Revenue Next Year-4.41%
Revenue Next 2Y-0.7%
Revenue Next 3Y0.01%
Revenue Next 5YN/A
EBIT growth 1Y0.83%
EBIT growth 3Y16.48%
EBIT growth 5Y7.37%
EBIT Next Year63.98%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y489.26%
FCF growth 3Y1.81%
FCF growth 5Y2.55%
OCF growth 1Y71.08%
OCF growth 3Y11.33%
OCF growth 5Y1.44%